The recent involvement of Morgan Stanley in the US spot bitcoin ETF has been viewed by some as a catalyst to end the current cryptocurrency bear market, given the vast distribution power of the Wall Street wirehouse's $8 trillion wealth management network. However, Blockstream CEO Adam Back cautions that this process will take longer than anticipated.
Back, an early contributor to the Bitcoin community, notes that while bitcoin ETFs are a significant development, institutional adoption is typically slow. He mentions that even when major institutions like BlackRock recommend allocating 2-4% of their portfolio to bitcoin, fund managers have not yet implemented this change, and it will take time.
According to Back, investors do not invest overnight, and a build-up of investment could take up to a year or 18 months. He believes that this slow adoption will eventually create a positive market trend.
Back also discusses the impact of government regulations on the industry, citing the crypto-friendly approach of the current US presidency as an improvement over the previous administration's stance. He notes that the establishment of bitcoin ETFs has the potential to transcend political administrations and that major financial institutions will defend their interests in the bitcoin market. Additionally, Back addresses the cyclical nature of bitcoin's price, driven by the quadrennial halving event, and the potential for a price slide due to market expectations.
He also touches on the topic of quantum computing's potential impact on bitcoin's cryptography, stating that while it may be a concern for institutions, it is not an immediate threat.